Private Limited Company

What is a Private Limited Company?

 

 

Private Limited Company is the most popular type of business entity in India which provides limited liability protection to its shareholders. It is very different from traditional brick and mortar stores and have lots of advantages over other forms of Business.

 

Private Limited Company is a registered under Companies Act, 2013 and is governed by Ministry of Corporate Affairs (MCA). Setting up a Private Limited Company is one of the highly recommended ways to start a business in India.

Choose Your Package

Silver

₹ 6899/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 RUN Application for Name
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • e-MOA and e-AOA
  • e-PAN
  • e-TAN
  • 2 e-copies of Share Certificates
  • ESIC Registration through SPICe+
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus

Gold

₹ 16899/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 RUN Application for Name
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • e-MOA and e-AOA
  • e-PAN
  • e-TAN
  • 2 e-copies of Share Certificates
  • ESIC Registration through SPICe+
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • GST Registration
  • SSI/MSME Registration
  • INC-20A Filing
  • Appointment of 1st Auditor
  • 1 Year GST Return Filing

Platinum

₹ 29999/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 RUN Application for Name
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • e-MOA and e-AOA
  • e-PAN
  • e-TAN
  • 2 e-copies of Share Certificates
  • ESIC Registration through SPICe+
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • GST Registration
  • SSI/MSME Registration
  • INC-20A Filing
  • Appointment of 1st Auditor
  • 1 Year GST Return Filing
  • 1st Income Tax filing upto turnover of Rs. 50 Lakhs
  • 1st Annual Filing upto turnover of Rs. 50 Lakhs
  • Form ADT 1 (Auditor Appointment in AGM)
  • Form AOC -4 (Form for filing financial statement and other documents with the Registrar)
  • Form MGT -7 (Form for filing annual return by a company)
  • 2 DIR - 3 KYC
  • Accounting Book Keeping up to 100 Transactions

 

Documents Required to Register a Private Limited Company

 

 

1. Passport size Photograph of all the Directors and Shareholders

 

2. PAN and Aadhar card of all the Directors and Shareholders

 

3. ID proof of all the Directors and Shareholders (Driving License/Voter ID/Passport)

 

4. Address Proof of all the Directors and Shareholders (Bank statement/Electricity Bill/Telephone Bill) not older than 1.5 months having name of the respective Director and Shareholder.

 

5. Registered Office Address Proof (Electricity Bill/Water Bill/Gas Bill or any other utility bill) not older than 1.5 months

 

Specific Requirements:

 

1. A Private Limited Company must have a registered office in India. Documents like bank statement or electricity bill should be recent.

 

2. A utility bill, rent agreement or sale deed and an  NOC (Non-Objection Certificate) from the landlord with his / her consent to use the office as a registered office of a company must be submitted as well.

 

 

Steps to Register your Private Limited Company

 

 

1. Experienced and dedicated personnel assigned for engagement.

 

2. Collection of required documents along with a simple checklist.

 

3. Verification of the Documents as required for Incorporation by our incorporation experts.

 

4. Process of application of Digital Signature Certificate.

 

5. Name approval application submitted to MCA.

 

6. Drafting of the essential documents by our Assigned Personnel based on the MCA approved name.

 

7. Signing of documents by the Directors and Shareholders.

 

8. Submission of documents along with Incorporation Form to MCA for approval.

 

9. Once MCA approves, it will grant Certificate of Incorporation and the company will be Incorporated.

 

 

Advantages of Private Limited Company

 

 

1. A company is a separate legal entity from its Directors and Shareholders.

 

2. The liability of the members with reference to company’s debts are limited.

 

3. Shares of a company limited by shares are transferable by a shareholder to any other person. The transfer is easy as compared to the transfer of interest in business run as a proprietary concern or a partnership.

 

4. A company being an independent legal entity can sue and be sued in its own name.

 

5. A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved.

 

6. There is no such minimum capital compulsion. Therefore, there is no pressure of fund requirements. A Private Limited Company can be registered with a mere sum of Rs. 1000 as total Authorized Share capital.

 

7. A Private Limited Company in India is the only form of business except Public Limited Companies that can raise funds from the Venture Capitalists or Angel investors.

 

8. The easy transferability of shares is one of the top reason, Entrepreneurs opt to register a company.

 

 

Compliances required by Private Limited Company

 

 

Statutory Auditor Appointment 

 

All registered Indian Companies must appoint a Statutory auditor within 30 days of incorporation. The auditor also needs to be appointed within 15 days from the conclusion of AGM. Therefore, the due date for ROC Form ADT 1 would be 14th October every year.

 

Declaration Of Commencement Of Business 

 

The capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA within 180 days of incorporation.

 

 

Hold Annual General Meeting:

 

For a private limited company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the financial year i.e. 30th September every year

 

 

Accounting:

 

Every private limited Company shall maintain proper books of accounts which shall represent an accurate and fair value of the state of affairs of the company. Accounting is necessary for the statutory audit. Annual filing and Income tax return filing which is mandatory.

 

 

Statutory Audit:

 

Every Public Limited Company registered under the Companies Act, 2013, irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year.

 

 

MAT Audit:

 

It is mandatory for the Private Limited Company to get their accounts audited under MAT i.e. Minimum Alternate Tax. The objective of the introduction of MAT was to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay any tax due to various tax concessions and incentives provided under the Income-tax Law.

 

 

ROC Form AOC-4:

 

The registered Private Limited Companies must file MCA Form AOC-4 which contains details and annexure relating to Balance Sheet of the Company, Profit & Loss Account, Compliance Certificate, Registered Office Address, Register of Member, Shares and Debentures details, Debt details and information about the Management of the Company. The due date for ROC Form AOC 4 would be 29th October i.e. 30 days from the conclusion of the AGM.

 

 

ROC Form MGT-7:

 

It is necessary to file MCA form MGT-7 which contains details of shareholding structure, change in directorship and details of the transfer of shares during the year if any. Due date for ROC Form MGT 7 would be 28th November that is 60 days from the conclusion of AGM.

 

 

DIR-3 KYC:

 

DIR 3 KYC is a form to be filed by Every director who has been allotted DIN (Director Identification Number). 

 

 

Income Tax Return:

 

Income tax returns need to be filed on or before 30th September 2021 for each financial year .

 

 

 

Starting Your Own Private Limited Company with UpriseLegal

 

 

With our experienced and skilled personnel, We at UpriseLegal makes process of registering your Private Limited Company very smooth and helps you in each and every step of company formation. We follow law to the core and uses our knowledge to avoid any hassles in your business so that you can rise and grow! You may get in touch with our compliance manager on 9173512402 or email us at [email protected] for free consultation.